Recognition Of Trade Unions.pptx

Recognition of Trade Unions -Monica Rani

Visiting faculty

Recognition under the TU Act 

The Trade Union Act 1926 only provides for registration and rights and liabilities of registered trade unions and its members.

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It does not deal with recognition of trade unions.

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There was an amendment Act i.e. Trade Union Amendment Act, 1947 which provided for recognition of trade unions but it has not been enforced till yet.

State Acts In some states there has been laws enacted to provide for recognition; these are: 

The Bombay Industrial Relation Act, 1946; or

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The Maharashtra Recognition of Trade Union and Prevention of Unfair Labour Practices Act, 1971 or

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similar provisions in force in other states like, Madhya Pradesh, Rajasthan, etc.

Code of Discipline 

The issue of recognition is covered by guidelines under ‘Code of Discipline’ voluntarily accepted by the employer and the employees.

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It would hold good unless and until these guidelines are replaced by any statute.

The object of recognition of the union is 

to truly represents a substantial body of workmen.

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to place the employer and employees in a position where the union which acts as bargaining agent.

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The underlining assumption is that the recognised union represent all the workmen in the industrial undertaking or in the industry.

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It enables the TU to discuss the problems of the workmen with the employer, negotiate with the employer, and arrive at a settlement binding on the employer and the workmen.

Object of Recognition

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According recognition to numerous unions whose members are also members of other recognised unions, is not only superfluous, but is self-defeating, undermining the very object of recognition.

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With numerous bargaining agents the number of friction points would not only escalate but the reaching of a satisfactory settlement for all would become far more difficult, if not impossible.

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Under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act 1971, there can at any one time be only one recognised union in an undertaking with at least thirty per cent of the workmen as it's members.

Object of Recognition

Registration of TU: the First Step 

Food Corporation of India Staff Union v. Food Corporation of India and Ors. MANU/SC/0250/1995 : (1995)IILLJ272SC

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The Supreme Court, in order to facilitate collective bargaining, observed that the Trade Union which takes up the matter of workmen service conditions truly represents the workmen employed in the establishments, the trade union is first required to get itself registered under the provisions of the Trade Unions Act, 1926.

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This gives a stamp of due formation of the trade union and assures the employer that the trade union is an authenticated body.

Method of Recognition 

When there are more than one registered trade union in an establishment, the question as to with whom the employer should negotiate or enter into bargaining assumes importance, because of the trade union with minority of the workmen/employees, the settlement, even if any arrived between the employers and the union, may not be acceptable to the majority and may not result in industrial peace.

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The Supreme Court found that the method to find out as to who should be the sole bargaining agent, has been a matter of discussion and some dispute. The 'check off system' which once prevailed has lost its appeal. The method of secret ballot was gradually accepted.

Process of Election: Secret Ballot 

The method should be adopted and adjusted in such a manner that it reflects the correct position as regards membership of the different trade unions operating in one and the same industrial establishment or undertaking. The Food Corporation of India and the Unions agreed to follow 'Secret ballot system' in order to yield correct result.

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The Supreme Court laid down certain norms and procedures in the nineteen-points to determine the strength of all eligible unions by secret ballot and then provided a mechanism for the elections to be held.

Recognition to one TU vis-à-vis other TU 

Balmer Lawrie Workers' Union, Bombay and Anr. v Balmer Lawrie & Co. Ltd. and Ors. AIR 1985 SC 311

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The SC observed that forming an association is entirely independent and different from its recognition. Recognition of a trade union confers rights, duties and obligation.

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Non-conferring of such rights, duties and obligations on a trade union other than the recognised union neither puts it in an inferior position, nor can the charge of discrimination be entertained. The members of a non-recognised association can fully enjoy their fundamental freedom of speech and expression as well as to form the association.

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It is not correct to say that the recognition by the employer is implicit in the fundamental freedoms to form an association.

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Balmer Lawrie Workers' Union, Bombay and Anr. v Balmer Lawrie & Co. Ltd. and Ors. AIR 1985 SC 311

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Sec. 20 (2) (b) of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act 1971 provides that an individual workman, who has his individual dispute with the employer arising out of his dismissal, discharge, retrenchment or termination of service will not suffer any disadvantage if any recognised union would not espouse his case and he will be able to pursue his remedy under the Industrial Disputes Act, 1947.

Statutory Right of Unrecognized TU 

Balmer Lawrie Workers' Union, Bombay and Anr. v Balmer Lawrie & Co. Ltd. and Ors. AIR 1985 SC 311

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The SC elaborated that even an unrecognised union enjoys the statutory right to meet and discuss the grievance of an individual workman with employer.

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It also enjoys the statutory right to appear and participate in a domestic or departmental enquiry in which its member is involved. This is statutory recognition of an unrecognised union.

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The exclusion is partial and the restriction, on such unrecognised union or individual workman to represent workmen, is in the larger interest of industry, public interest and national interest. Such a provision could not be said to be violative of fundamental freedom guaranteed under Article 19(1) (a) or 19(1)(c) of the Constitution.

Pre-requisites required for Recognition 

Balmer Lawrie Workers' Union, Bombay and Anr. v Balmer Lawrie & Co. Ltd. and Ors. AIR 1985 SC 311

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The Supreme Court held that conferring the status of recognised union, on the union satisfying certain prerequisites which the other union is not in a position to satisfy, does not deny the right to form association.

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In fact the appellant-union was registered under the Trade Unions Act and members had formed their association without force or hindrance by any one.

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The appellant union could also communicate with the employer.

Pre-requisites required for Recognition 

Balmer Lawrie Workers' Union, Bombay and Anr. v Balmer Lawrie & Co. Ltd. and Ors. AIR 1985 SC 311

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The SC said that it is always open to the workmen who are not members of the recognised union to form their own association or union and to claim higher percentage of membership so as to dethrone the representative union and take its place.

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The Court further held that it is not correct to say that the disinclination of the workmen to join the recognised union violates the fundamental freedom to form association.

Settlement between the Recognised TU and CO. valid 

Balmer Lawrie Workers' Union, Bombay and Anr. v Balmer Lawrie & Co. Ltd. and Ors. AIR 1985 SC 311

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Under the settlement arrived between the Co. and the recognised TU, the 15% of gross arrears of the workers’ salary had to be transferred into the account of the recognised TU, this settlement clause was challenged.

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The SC, though, held this clause as proper, and observed that workmen who are members of a union may pay fee for membership and enjoy the advantage of membership but if by the action of the recognised union all workmen acquire benefit or monetary advantage, the members and non-members alike can be made to make common sacrifice in the larger interest of trade union movement and to strengthen the trade union which by its activities acquired the benefits for all workmen.

Recognition of an association not a Fundamental Right. 

Recognition of an association is not a fundamental right. Statutory rights accorded through law and later revoked, if fall under the reasonable restriction under either Article 19(4) or Article 33 are not open to challenge on the ground of violation of right to form association under Article 19(3).

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In the case of Delhi police Non-Gazetted Karamchari Sangh v Union of India (1987) 1 SCC 115, proviso to a provision of the Police Force (Restriction of Rights) Rules, 1966, originally enabled all non-gazetted employees of the Delhi Police to be members of the Sangh, later it was revoked through an amendment in 1970 and members of police force of same rank only were allowed to form one association.

Conformity with Special Law needed 

In this case, Rue 11 provided for revocation of recognition if Articles of Association were not in conformity with the Rules. Under this very provision the recognition granted to the Sangh was withdrawn and the Supreme Court held that in view of the Police Force (Restriction of Rights) Act, 1966 enabling the rulemaking authority to define any group of police force that could form an association, Rule 11 was valid.

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The appeal was accordingly dismissed.